NEW DELHI: The Cabinet Committee on Economic Affairs on Thursday approved extending grants-in-aid to the pharmaceutical industry for research and development projects, involving clinical trials to develop new drugs for neglected diseases of tropical regions, under the Drugs and Pharmaceuticals Research Programme (DPRP) of the Department of Science and Technology. It would help in developing new drugs for neglected diseases of tropical region such as tuberculosis, malaria, kala-azar, and filariasis which were still a big threat in the Indian subcontinent, Minister of State in the Prime Minister's Office Prithviraj Chavan told reporters here. During the 11th Five-Year Plan, Rs.45 crore was earmarked to help the pharma industry, Mr. Chavan added. It could be increased as the programme develops, he said. The department has been implementing the DPRP since 1994-95 as a Plan Programme to support pharma industry. From 2004-05, this programme has extended soft loans to pharma industries for R&D projects to the tune of 70 per cent of the total project cost at a simple interest rate of 3 per cent with 10 years of instalment repayment period beginning from the end of the project duration. The CCEA also cleared the implementation of the existing Central Sector Scheme for Conservation, Development and Sustainable Management of Medicinal Plants in the modified form. The total outlay of the scheme under the 11th Five Year Plan is Rs.321.30 crore. According to Mr. Chavan, the scheme will now need to undertake state-wise rapid threat assessment of medicinal plants through an internationally accepted mechanism of Conservation Assessment and Management Prioritisation (CAMP) workshops and setting up medicinal plants conservation areas. The scheme will include promotion of research and development for domestication of wild medicinal plants, development of agro-techniques and post-harvest management storage and processing. It will focus on promotion of quality assurance and standardisation through development of good agricultural practices, good collection and storage practices and development of monographs on medicinal plants.